Pitney Bowes signs lease for new Stamford location

Updated 6:58 pm, Wednesday, March 5, 2014

One of Stamford's most venerable companies has followed up on a commitment made in November and announced that its headquarters is remaining in the city.

Pitney Bowes, the document and information technology management company that reported $3.9 billion in revenue last year, plans to move its headquarters this summer from 1 Elmcroft Road to 3001 Summer St., the owners of the seven-story office building said in a statement on Wednesday.

Pitney Bowes, which in late 2012 named former IBM executive Marc Lautenbach its president and CEO, accepted a deal from the state that includes a $15 million loan and tax credits that could total $12 million as it grows its operations in Stamford, Danbury and Shelton. If the company adds 200 jobs within five years to the 1,600 it employs in Connecticut, Pitney Bowes won't have to repay $10 million of the state loan.

No one from Pitney Bowes was available for comment Wednesday, but in November company spokeswoman Leigh Walton said it was going to keep its headquarters in Stamford and was looking at several locations in the city.

"For more than 90 years, Pitney Bowes has been an integral part of the Stamford community," Lautenbach said the November news release. "Our long-standing commitment to Stamford and the state of Connecticut is stronger than ever."

Jack Condlin, president and CEO of the Stamford Chamber of Commerce, welcomed the company's decision, stressing the Pitney Bowes' importance not to just the city's tax rolls and employment levels, but also to its psyche.

"Pitney Bowes was born here and spent its entire life here. Losing Pitney Bowes would not just result in losing a company and jobs but losing a part of our heritage," he said. "In today's world, corporations move easily and quickly," he said.

The departure of Pitney Bowes from 1 Elmcroft Road begs the question of what will happen with the 442,455-square-foot building.

With the arrival of Pitney Bowes, the building is about 64 percent occupied, said Ed Tonnessen, managing director of Jones Lang LaSalle, which represents the property. The company will occupy the sixth and seventh floors of the building, filling 74,190 square feet.

$12 million remodel

Pitney Bowes' decision to come to the building, which is owned and managed by The Ashforth Co., validates the recent remodeling of the complex, Ashforth Co-CEO Darrell Harvey said in a statement Wednesday announcing the move.

"The repositioning of our property addresses the needs and changing working environment sought by growing companies today," Ashforth Co-CEO Andrew Ashforth said in the statement. "Our new expansive lobby and adjoining cafe with outdoor seeding provides additional areas for congregating and for work, and our state-of-the-art new fitness facility adds to the overall healthy work environment."

Pitney Bowes joins KPMG, Genworth and Navigators as tenants in the 290,000-square-foot building, where Ashforth completed $12 million in renovations at the end of 2012, designed by Roger Ferris + Partners of Westport.

Represented by Tom O'Leary, senior director of Cushman & Wakefield, Pitney Bowes spent "several months" before agreeing to a long-term lease for the space, Tonnessen said, commenting that before its arrival the building was about 34 percent occupied. According to the Ashforth website, the sixth and seventh floors were being offered at $38 per square foot.

`Best bones'

The building is served by a dedicated shuttle service that completes trips to or from the Stamford Transportation Center in about 12 minutes, Tonnessen said.

"I'd argue that it offers some of the best bones in the marketplace in the quality of building management and infrastructure," he said.

Tonnessen said he hopes Pitney Bowes' decision encourages other businesses seeking space to consider the property.

"We have a couple of other negotiations going on. Hopefully, this continues the momentum," he said.

Pitney Bowes conducted a search throughout the tri-state region, O'Leary said, but was impressed by the improvements, the ownership and the location.

"It shows the vibrancy that they (Pitney Bowes) sees in Stamford, and it bodes well for the area and the market," said O'Leary, commenting that Cushman & Wakefield has represented the company on several other occasions.

Founding council member

The move to Summer Street comes as Lautenbach steers Pitney Bowes in a new direction to further diversify its product line.

Despite reporting net income of $90.1 million in the fourth quarter of 2013, down from $110.3 million in the same period in 2012, Lautenbach was optimistic in comments of Jan. 30 when he discussed the results.

Noting that revenue was up slightly to $1.03 billion in the most recent quarter over the fourth quarter of 2012, Lautenbach said the company was meeting its overall strategic objectives.

Pitney Bowes was a founding member of the organization that eventually became the Business Council of Fairfield County, and it remains an active participant, said Christopher Bruhl, president and CEO of the council, who took an upbeat approach to the company's decision to relocate.

Companies need to adapt to the times, he said, and Pitney Bowes' new leadership must consider what is best for business.

"It's about continuous change," Bruhl said. "It's a new direction for the company."